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Ringtone Market to double to US$4 Billion by 2008
Posted: 10-Aug-2004 [Source: Strategy Analytics]

[The dynamics of the ringtone market are changing as carriers and record companies position to respond to ever higher consumer demand, according to this Strategy Analytics report.]

London, England -- The Wireless Internet Applications (WIA) service of Strategy Analytics, the global research and consulting company, has released a new report, "Real Music Ringtones: Changing Dynamics In The $4 Billion Ringtone Market." This report identifies the introduction of real music ringtones as the catalyst for music companies such as BMG, Sony Music, EMI, Warner Chappell and Universal, to become more actively involved in the ringtone value chain. Additionally, carriers will win the battle for consumer dollars spent on ringtone services, as they improve the shape of their data offerings.

Senior Analyst, Nitesh Patel, states, "Over the next five years, as demand evolves from monophonic reproductions of musical tunes to sample music based on copyright master recordings, the ringtone market is set for consolidation. Major record companies will move to strengthen their position by acquiring ringtone production companies, or setting up their own, in-house production studios, while continuing to act as licensors." This shift in market dynamics will increase pressure on the margins of many business-to-business ringtone solutions vendors, and their main challenge will be to convince content owners and operators to participate in adding true value to the mobile phone ringtone distribution process.

David Kerr, Vice President of the Strategy Analytics Global Wireless Practice, adds, "Although many operators missed the initial ringtone opportunity by failing to anticipate the demand for first generation ringtones, they are now starting to improve their competitive edge through aggressive pricing and through the development of improved data strategies. This includes supporting the widest possible range of mobile phones, offering a variety of flexible payment methods, increasing consumer awareness and partnering with key music brands and artists."

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